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Two firms, each in a different country, sell homogeneous output in a third country. Government 1 subsidizes its domestic firm by s per unit. The other government intervention, the market has a Nash-Cournot equilibrium. Suppose demand is linear, p=5-q1-q2, and each firm's marginal and average costs of production are constant at m.
Government 1 maximizes net national income (it does not care about transfers between the government and the firm, so it maximizes the firm's profit net of the transfers).
Show that Government 1's optimal s resaults in its firm producing the Stackelberg leader quantity and the other firm producing the Stackelberg follower quantity in equilibrium.
Two identical firms compete in competition (Cournot competition) in the same market where the inverse demand is P(Q) = 100 − Q. The constant marginal cost of both firms is 10. Find the best response function for each firm. (b) What is the Cournot (si..
Why might governments nationalize firms and do they have added advantage or unfair one over the private owned firms? What are the different forms of terrorism and how can international managers meet this challenge?
Recent survey of high school students, it was found that the average amount of money spent on entertainment each week. Values are representative of all high school students.
Bell company has stock outstanding as follows, $10 par per share, 140000 shares, preferred 5%, 100 par per share, 8000 shares.
q.q1. consider two persons ann and bill and two-goodsx and y exchange economy. the total endowment of the economy is
If the demand curve is QD = 100 - 10P and there is a $1 price increase, then the elasticity of demand at P = 2 is 2. If the absolute value of a demand elasticity is less than 1, then
Consider a consumer who spends all of her income on two goods. Prove that it is impossible for both goods to be inferior for this individual. (Suppose the assertion is not true. Write algebraically what this means, and derive a contradiction by using..
Your department is budgeting miscellaneous expenses for the next 5 years. Your best guess at the annual inflation rate is 3.9%, and the combined MARR is 15%. Expenses currently run $14,500 per year. Assume that expenses are end-of-year payments.
In 2016, a nation's population was 10 million, its real GDP was $1.21 billion, and its GDP deflator had a value of 121. By 2017, its population had increased to 12 million, its real GDP had risen to $1.5 billion, and its GDP deflator had a value of 1..
Which of the following is an example of an autonomous agency of the United Nations? Which of the following is provided under the Foreign Sovereign Immunities Act? Throughout Christianity, divine and natural laws have been issued in the form of ______..
Discuss balance of fixed and variable costs for organization. Explain how has Internet changed this balance for organizations.
Given the following information for the market for McDonalds Quarter Pounder with Cheese large combo meals in Illinois locations: Assume that the minimum wage in Illinois is increased. Carefully explain what will happen to the market for
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